NIKKEI|TOPIXThe Nikkei 225 closed essentially flat, down 0.02% to 69,030.92, masking sharp divergence at the stock level: IT and software names led gains, with SHIFT Inc. (3697.T) surging 6.48%, Nomura Research Institute (4307.T) up 5.09%, Trend Micro (4704.T) up 4.91%, BayCurrent (6532.T) up 4.82%, and semiconductor equipment name Lasertec (6920.T) up 4.18% — consistent with TOPIX IT & Services (+0.98%) and Electrical Equipment (+0.88%) sector outperformance. TOPIX Chemicals led all sectors at +1.25%.
NIKKEI|TOPIXOn the downside, Fast Retailing (9983.T) fell 4.04% and SoftBank Group (9984.T) dropped 3.92%, while Renesas Electronics (6723.T) shed 4.00% — the latter a notable move for a key automotive and industrial semiconductor supplier — and Asahi Kasei (3407.T) lost 3.94%. TOPIX Banks (1615.T) was the worst-performing sector at -1.44%, a counterintuitive result given that higher JGB yields driven by BoJ normalisation would ordinarily support net interest margins, potentially reflecting profit-taking or currency sensitivity concerns.
JPY|BOJUSD/JPY held at 158.06, unchanged on the session, with the yen failing to benefit materially from the BoJ's ongoing normalisation path as US-Japan yield differentials remain wide — US 10-year at 5.22% versus gradually rising JGB yields — and the BoJ's rate around 1.00%. The Nikkei VIX at 30.14 (up 1.86%) is meaningfully elevated relative to the US VIX at 14.84, reflecting Japan-specific uncertainty around the pace and trajectory of further BoJ rate moves.
HKEX|CHINAHong Kong's Hang Seng (HKEX) was the clear Asia-Pacific outperformer on Friday, gaining 1.79% to 24,211.35, driven by improving global risk sentiment and residual optimism around China's targeted stimulus measures including prior mortgage rate and downpayment cuts, with markets positioning around upcoming Q3 Chinese GDP data. The SSE Composite was far more subdued at +0.05% to 3,813.79, highlighting the persistent divergence between offshore and onshore Chinese equity sentiment.
KOSPI|TWSEKorea's KOSPI fell 2.62% to 6,625.93 and Taiwan's TWSE declined 0.99% to 49,313.44 — both markets with heavy semiconductor and technology export exposure — on the back of Apple iPhone 18 Pro component production cut reports, which represent a direct demand signal for key suppliers in both markets. USD/KRW rose 0.29% to 1,342.99, reflecting won weakness alongside the equity sell-off.
ASXThe ASX 200 gained 0.64% to 8,716.60, with the ASX VIX falling 1.89% to 10.93 — the lowest volatility reading across the Asia-Pacific volatility measures provided — suggesting Australian equity markets absorbed global macro pressures relatively well. ASX Industrials led at +2.23%, Consumer Discretionary +2.16%, and REITs +1.88%, while Materials (-0.03%) and Communications (-0.57%) lagged; iron ore at $90.68/t (down 0.33%) provided a soft backdrop for materials names despite copper's 1.89% gain to $6.6425/lb supporting broader base metals sentiment.